2021 Year in Review
The housing market in California has remained hot for most of the year, with home prices reaching record highs month after month. Fueled by the pandemic, California home prices have increased in every market, with Orange County at 17.1% higher than 2020. Despite higher prices, there are still multiple buyers offering on homes and their search time is increased throughout much of the state.
Fast Paced Market Conditions
Low mortgage rates and low inventory have allowed the California housing market to maintain a healthy pace throughout 2021. Home sales experienced a slight decline in September and October. However, the California housing market has outpaced 2020 home sales and will likely continue to do so through the end of the year.
Home sales in California increased over 13% this year. In an effort to beat out the competition, many buyers offer bids above the asking price. In October, a staggering 60.2% of California homes sold above the asking price.
Home Prices Increase
According to the California Association of Realtors (C.A.R.), the median home price increased in all major regions of the state. Five regions increased by double-digits. Driven by low mortgage rates, buyers seeking more living space, and short supply of available homes on the market, the California housing market remains extremely competitive.
High selling prices are encouraging more sellers to list their homes for sale and a recent survey showed that 70% of Californians believe that now is a good time to sell a home. (can you name the source)
High demand for homes statewide means that fast moving market conditions will likely stick around until next year. C.A.R.’s 2022 California Housing Market Forecast predicts a decrease in existing single-family home sales next year, possibly due to a lack of replacement property. However, supply and demand imbalances and supply line delays due to the pandemic will keep home prices rising.
Home Prices Starting to Level Out
In September, home prices began to level out in California. A second drop in October caused the median home price to fall below the $800,000 threshold. This is the first time that home prices have dipped below $800,000 in seven months. Low mortgage rates are keeping qualified buyers interested; The Pacific West Board of Realtors reports that homes throughout California state are selling at an average of 11 days on market. Orange County is at an average 8 days on market. Based on this data, we are advising home buyers looking to take advantage of low mortgage rates and fix their home price to act fast.
Strategic Sales and Marketing offers a variety of real estate sales and marketing services. Our team has years of experience working with the real estate industry and understands the steps required to identify and connect with potential buyers. Please contact us for more information about our services.